GM makes $1 billion investment in U.S. factories

2017 GMC Sierra HD

Handout, GMC

Company moving axle manufacturing out of Mexico, says it will create or keep 1,500 jobs in U.S.

by
Clayton Seams | January 17, 2017

Small

Medium

Large

General Motors announced today that it would make a US$1 billion investment in U.S. operations, as well as move production of truck axles from Mexico to Michigan. GM stated that the move will create or maintain 1,500 U.S. jobs, while the axles will be part of full-size GM pickups expected to debut in 2018, with the move creating 450 new jobs. The investments are on top of a further US$2.9 billion investment announced last year.

GM CEO Mary Barra says, “The U.S. is our home market and we are committed to growth that is good for our employees, dealers and suppliers and supports our continued effort to drive shareholder value.”

As can be expected now with this type of announcement, president-elect Donald Trump fired off a wave of garbled Tweets half-implying that the move was his doing. In two tweets, he said, “With all of the jobs I am bringing back into the U.S. (even before taking office), with all of the new auto plants coming back into our country and with the massive cost reductions I have negotiated on military purchases and more, I believe the people are seeing ‘big stuff’.”

Despite what Trump may think, giant auto manufacturers don’t change direction on a dime and the production changes were likely in planning for a very long time. But as Trump has previously threatened 35 per cent tariffs on Mexican imported cars, no OEM wants to be too shy about showing their star-spangled commitment to U.S. jobs.